3. One period (e.g. a year) from the present, it is known (with certainty) that each unit of an asset pay a dividend of $20 and will have a market value of $240. Risk-free borrowing, or lending, is possible such that $1 borrowed, or lent, today will be worth $1.04 one period from the present (i.e. it is as if the risk-free interest rate, ignoring compounding is 4% ). a Assuming that asset markets are frictionless, obtain a prediction for the value of the asset today in the absence of arbitrage opportunities? b If you observe that the price is $243 in the market, what is your trading strategy? c If the price is $255 in the market, what is your trading strategy